Debt relief restrictions orders

A DRRO is a court order that means the restrictions of your DRO will last longer than 12 months.  

When might I get a DRRO?

The official receiver must apply to court for a DRRO. They can do this if they think: 

• you made your situation worse before applying for a DRO 
• you’ve done something against the rules during the application process or while the DRO was in place
• you’ve acted dishonestly during the application process or while the DRO was in place 

Actions that can lead to a DRRO?

Behaviours that might lead the official receiver to apply for a DRRO include:

• not co-operating with them
• committing fraud
• not keeping records that account for loss of property
• showing preferential treatment to a creditor by paying them before others 
• giving away money or property for less than it’s worth (called transaction at undervalue)
• borrowing money you didn’t plan to pay back
• gambling or taking excessive risks with money
• being overly extravagant
• failing to tell them about assets you had when you applied for a DRO or you got when your DRO was in place
• continuing a business knowing you couldn’t pay your debts

 This isn’t an exhaustive list but it gives you a good idea of the kind of actions that could result in a DRRO. 

How long does a DRRO last?

A DRRO can last for between two and 15 years.

Can a DRRO be stopped?

A DRRO can be stopped if the court orders it. It won’t stop if your DRO is revoked (cancelled). This means you’ll still have to follow any restrictions set out by the DRRO.

What happens if I don’t follow the restrictions with a DRRO?

If a DDRO has been made and you don’t follow the restrictions of your DRO, you could be fined or sent to prison.

Where are DRROs recorded?

DRROs are recorded on the individual insolvency register for as long as they remain in place. People can also find details of restrictions orders made within the last three months using the bankruptcy restrictions search facility on the gov.uk website. 

The official receiver has to tell you before they ask the court for a DRRO. They’ll warn you the order is being considered and offer you an interview at your local official receiver’s office. You can ask for the interview to take place over the phone instead. 

What happens at the interview?

The official receiver will tell you why they’re considering applying for a DRRO against you and give you a chance to explain your point of view and show any evidence that may help you. You can bring someone with you e.g. your DRO adviser or a friend. 

What happens after the interview?

You’ll be told if the official receiver is planning to apply for a DRRO against you or if no further action is being taken.

You’ll get a letter with a copy of their report explaining why they think you should be given a DRRO. 

This is called a notice of intention. You have 21 days to accept or dispute this.

If you receive a notice of intention, speak to your DRO adviser before you reply.  

If you accept the reasons for the DRRO

If you accept the reasons for the DRRO, you can offer the official receiver a debt relief restrictions undertaking (DRRU) instead of a DRRO. 

They’re largely the same but you won’t have to go to court and you might be not restricted for as long as you would with a DRRO.

If you dispute the reasons for the DRRO

If you dispute the reasons for the DDRO, the official receiver will apply to the court. You’ll get a letter with at least eight weeks’ notice of a court hearing date and details of the evidence against you. 

You need to:

• tell the court you got the documents within 14 days, using the form you’re sent
• send your evidence to court within 28 days of getting your letter 
• go to the court hearing – if you don’t go, a decision will still be made without you 

What happens if I ignore the notice of intention?

If you don’t reply to the notice, the court will still look at the official receiver’s evidence and make its decision without hearing your side of things. 

Once a DRRO application is made, if it’s in the public interest and the application is likely to be successful, the court can make an interim DRRO (IDRRO). 

This is pretty much the same as a DRRO and is effective as soon as it’s made.

It lasts until:

• a decision is made on the DRRO application
• a DRRU is accepted
• the court discharges the IDRRO